ATTOM Data Solutions Report: Housing Markets Most Vulnerable to Coronavirus Impact
In its second quarter 2020 Special Report released on July 10, ATTOM Data Solutions identified the East Coast and northern Illinois as having the highest concentrations of housing markets vulnerable to the impact of COVID-19. Clusters exist in the areas of New York City, Chicago, Baltimore and Washington, D.C. Although four counties in the Western region of the U.S. were in the top 50 most at-risk counties, that region had the fewest clusters overall. The report indicates that 43 of the 50 counties most vulnerable to the housing-related economic impact of the pandemic stretch from Connecticut to Florida and also within Illinois. According to the report, factors considered for at-risk status included percentage of homes currently facing possible foreclosure, the portion of homes with mortgage balances that exceed the estimated property value and the percentage of local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability, home equity and foreclosure reports prepared by ATTOM. Rankings are based on a combination of those three categories in 406 counties around the United States with enough data to analyze. Counties were ranked in each category, from lowest to highest. The findings surface amid signs that home-price growth stalled across significant parts of the country in May 2020, with more expensive areas of the West among those getting hit hardest. “Home-sales data from around the country is starting to show that eight years of price gains may be coming to an end amid the economic damage flowing from the virus pandemic. It’s still too early to make any definitive calls, but the latest numbers show storm clouds gathering over the market,” said Todd Teta, chief product officer with ATTOM Data Solutions. “With this second special report on the potential impact of the pandemic, we see pockets around the country that appear more or less poised to withstand downward pressure on prices and other market conditions. Over the next few months, enough data should come in to tell us how things will most likely pan out.” Read the full report for additional highlights and the full methodology used.
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